senate Bill S4122

Signed by Governor

Relates to payments in lieu of taxes made by certain entities for property located at One Nirvana Plaza, Forestport, New York

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor
view actions

actions

  • 11 / Mar / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 16 / Apr / 2013
    • 1ST REPORT CAL.331
  • 17 / Apr / 2013
    • 2ND REPORT CAL.
  • 22 / Apr / 2013
    • ADVANCED TO THIRD READING
  • 03 / Jun / 2013
    • PASSED SENATE
  • 03 / Jun / 2013
    • DELIVERED TO ASSEMBLY
  • 03 / Jun / 2013
    • REFERRED TO WAYS AND MEANS
  • 17 / Jun / 2013
    • SUBSTITUTED FOR A6064
  • 17 / Jun / 2013
    • ORDERED TO THIRD READING RULES CAL.229
  • 17 / Jun / 2013
    • PASSED ASSEMBLY
  • 17 / Jun / 2013
    • RETURNED TO SENATE
  • 17 / Sep / 2013
    • DELIVERED TO GOVERNOR
  • 27 / Sep / 2013
    • SIGNED CHAP.367

Summary

Relates to payments in lieu of taxes made by certain entities for property located at One Nirvana Plaza, Forestport, New York.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A6064
Versions:
S4122
Legislative Cycle:
2013-2014
Law Section:
Real Property Taxation

Sponsor Memo

BILL NUMBER:S4122

TITLE OF BILL: An act in relation to a certain agreement for a
payment in lieu of taxes

PURPOSE: Relates to payments in lieu of taxes made by certain
entities for property located at One Nirvana Plaza, Forestport, New
York.

SUMMARY OF PROVISIONS:

Section one makes provisions for payments in lieu of taxes made by
certain entities for specified properties and relates to eligibility
for real property tax credit.

Sections two provides the effective date.

JUSTIFICATION: Qualified Empire Zone Enterprises (QEZE) are vital
businesses within our communities that encourage job growth and foster
economic development. As an incentive to participate, these entities
qualify for tax exemptions and refunds. For example, under New York
State tax law, a QEZE tenant that is responsible for property taxes
under its lease is eligible for a refund for paid property taxes.
Payments by a lessee made pursuant to a PILOT agreement qualify as
property taxes that are eligible for this refund.

Nevertheless, there has been a recent policy shift within the New York
State Department of Taxation and Finance (NYSTDF) regarding this type
of agreement. NYSTDF has denied credit for lessee payments as a result
of them not being a "party to" the PILOT agreement between the
landlord and the tax jurisdiction. As a result, lessees who have been
approved for the tax credit, have paid taxes consistent with their
lease agreements, and have been audited by the state during the
relevant time period, are now being assessed for credits awarded in
prior years and face denials in future years.

These entities have complied with the spirit of the law, and have
relied on the tax credit as a significant component of their budgets.
Such a policy not only creates a disincentive for these businesses to
continue their work in our communities, but jeopardizes their current
fiscal integrity.

LEGISLATIVE HISTORY: Similar to Chapter 430 of 2012.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediate and shall apply to taxable years beginning
on and after January 1, 2009 and ending on or before December 31,
2012.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4122

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 11, 2013
                               ___________

Introduced  by  Sen.  GRIFFO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Local Government

AN ACT in relation to a certain agreement for a payment in lieu of taxes

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Notwithstanding  the  provisions  of  subdivision  (e) of
section 15 of the tax law, any payment in lieu of taxes made by a quali-
fied empire zone enterprise to the state, a municipal corporation, or  a
public  benefit corporation pursuant to its lease agreement for property
located at One Nirvana Plaza, Forestport, New York with a landlord  that
is  a party to a payment in lieu of taxes agreement between the landlord
and the state, municipal  corporation,  or  public  benefit  corporation
shall  be  deemed,  for the purposes of subdivision (e) of section 15 of
the tax law, to have been made pursuant to a payment in  lieu  of  taxes
agreement  with  the  state,  municipal  corporation,  or public benefit
corporation. Such qualified empire zone enterprise shall be eligible  to
claim the real property tax credit provided by section 15 of the tax law
provided  that  for  each  of such periods, the landlord has not filed a
claim for the real property tax credit for  such  payments  nor  made  a
payment  in lieu of taxes to the state, municipal corporation, or public
benefit corporation pursuant to its agreement with the state,  municipal
corporation,  or public benefit corporation for such payments.  Notwith-
standing any section of law to the contrary, such credit shall be  based
upon the payments in lieu of taxes and employment of the tenant.
  S  2.  This  act shall take effect immediately and shall only apply to
taxable years beginning on and after January 1, 2009 and  ending  on  or
before December 31, 2012.


 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09333-02-3

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.